The prospect of a slower rebound from the pandemic is weighing on markets as the fast-spreading delta strain of the coronavirus hampers economic reopening.
A sovereign debt rally, record negative real yields in the U.S. and Europe and a tumble in cyclicals like emerging-market stocks are among the trends suggestive of a waning recovery. Economic risks include mobility curbs to fight the virus, elevated inflation and a tapering of Federal Reserve stimulus support.
“The new lows in real yields and falls in nominal yields reflect concern about the outlook in my view,” said John Briggs, global head of desk …
